"We're working on it, but it's not final," Gellert said. "No real, hard money has been given to us by the potential buyers."

Gellert was involved in the building of Serramonte Center and has been active in its operation since it opened in 1968. The mall sits on 80 acres off Interstate 280 and has parking for more than 4,600 cars. For decades, it has been the dominant retail location in Daly City.

In recent weeks, the U.S. shopping center landscape has been rocked by the announced acquisition of Rodamco North America NV by three industry rivals. The planned purchase would affect 35 major shopping centers around the country,

including San Francisco Centre and the Oaks in Cupertino.

The proposed deal between Gelsar and Capital & Counties USA, by contrast, would be a much smaller transaction.

Capital & Counties USA owns about 1 million square feet in California, including half of Ghirardelli Square in San Francisco and the Willows Shopping Center in Concord. But the company does not have a large national profile.

"We have a desire to increase our presence," Newton said yesterday. "It's a great, well-run shopping center and with it we'll nearly double our portfolio."

Newton said Serramonte was a solid performing property, with $400 of sales per square foot per year, above the $300 industry average.

Generations of Daly City and South San Francisco families, many of Filipino and Latin descent, have shopped at Serramonte.

Macy's and Mervyn's occupy two anchor positions in the enclosed mall. Montgomery Ward, which was the third anchor for years, will be replaced next month by a 160,000-square-foot Target store.

The mall has about 140 retailers.

John Martin, city manager for Daly City, said officials were looking forward to the change in ownership.

"The most likely effect would be the availability of additional capital and the potential to expand and renovate," Martin said. "It could be very positive. "

Rumors of the impending sale had been circulating among retailers for weeks.

"We heard the newcomers have got more money and are going to put in a better image," said Moe Alhindi, owner of the Great Steak & Potato sandwich shop. "They could bring in big names, like Nordstrom."

Newton, however, said significant changes are not in the works.

"We don't have plans to make major changes," he said. "We will improve it over time, obviously, and we think the perimeter is underdeveloped. Serramonte is a very solid midmarket regional mall with a very good sales performance."

Serramonte Center

Location: Daly City

Opened: 1968

Size: 860,000 square feet of retail space on 80 acres

Anchors: Macy's, Mervyn's, Target

Tenants: 140

Parking: 4,645 spaces

Seller: Gelsar Inc. of San Francisco

Now Playing:

Buyer: Capital & Counties USA, the U.S. subsidiary of Liberty International of London

Reported Sale Price: $119 million -- Source: Chronicle research

Latest from the SFGATE homepage:

Click below for the top news from around the Bay Area and beyond. Sign up for our newsletters to be the first to learn about breaking news and more. Go to 'Sign In' and 'Manage Profile' at the top of the page.